Asked by Allan Gazcon on Jul 25, 2024
Verified
A static budget is geared toward a single level of activity.
Static Budget
A budget that does not change or adjust over the period, established at the start of a period and based on a fixed level of activity.
Standard Costing
A cost accounting system that assigns a fixed cost to inventory with the variance analyzed to improve cost control and management decisions.
Labour Efficiency Variance
The difference between the actual hours worked and the standard hours expected to be worked, multiplied by the standard labor rate.
- Evaluate the effects of using flexible in comparison to static budgets.
Verified Answer
ZA
zayrehan ashleighJul 28, 2024
Final Answer :
True
Explanation :
A static budget is prepared based on a predetermined level of activity, and it does not adjust for changes in activity levels.
Learning Objectives
- Evaluate the effects of using flexible in comparison to static budgets.